The automotive RADAR market size is projected to grow at a CAGR of 23.81% during the forecast period, to reach USD 6.61 billion by 2021
Rising concerns pertaining to vehicle, driver, passenger, and pedestrian safety along with increased involvement of players across the ecosystem have fueled the growth of the automotive RADAR market globally. The growing trend of autonomous vehicles is also a major factor that has contributed to the growth of this market.
Adaptive cruise control system is estimated to have the highest growth potential, and will further boost the demand for the automotive RADAR market. This growth can be attributed to the proven benefits of the system in vehicle safety and increased autonomous level. The National Transport Safety Board, U.S. included adaptive cruise control in its ten most wanted safety improvements in 2013. Under the Euro NCAP rating system, these advanced systems will help to get a better rating if it is incorporated in the vehicle.
The 7X-GHz RADAR sensor is estimated to lead the automotive RADAR market, by frequency, during the forecast period. The high demand for the 7X-GHz RADAR sensor can be attributed to advantages offered by these sensors in various ADAS applications. 7X-GHz RADAR sensors are used in adaptive cruise control, emergency braking system, and collision avoidance system, among others. The market for these technologies is on the rise due to its better resolution and range capability.
Mid-priced passenger vehicle is estimated to lead the automotive RADAR market. This is because the market is moving toward mid-priced segments due to reduced cost of the system along with increased awareness about safety. Previously, only being incorporated in luxury vehicles, the automotive RADAR is now being incorporated in mid-priced vehicles also.
The European region is estimated to be the largest market for automotive RADARs during the forecast period. Germany, being one of the early adopters of advanced technologies, drives the automotive RADAR market in the region. Furthermore, technology adoption rate is also high in other countries from this region such as the U.K., Belgium and the Netherlands. The region has some of the most stringent vehicle safety regulations, which would boost the market for advanced driver assistance technologies.
The key factors restraining the growth of the automotive RADAR market include high cost of these systems and interference issues faced if the system will be incorporated in mass market vehicles. The prices of RADAR systems have decreased in the past few years, but are still on the higher side. Driver assistance systems are composed of several electronic components and thereby increase the cost of the overall vehicle.
The automotive RADAR market is dominated by many international as well as domestic players such as Robert Bosch GmbH (Germany), HELLA KGaA (Germany), Continental AG (Germany), Denso Corporation (Japan), Delphi Automotive PLC (U.K.), and Autoliv Inc. (Sweden) among others.
Rising Government Regulations for Vehicle Safety and Increase in Adoption of ADAS Technology By OEMS
Increased Demand for Premium Segment Vehicles
Increase in Number of RADAR Sensors Used Per Vehicle
Usage of RADAR Detectors Considered as Illegal in Some Countries